Global Offset Experts: Recent study shows tougher EU climate target will assist GDP.

Feb. 23, 2011 - PRLog -- Global Offset Experts has learned of a study led by the Potsdam Institute for Climate Impact Research and commissioned by the German Environment Ministry, which says that if the EU increases its target from its existing 20% to 30% below 1990 levels by 2020, innovation and investment in a low-carbon economy would experience an increase after the recent financial crisis.

"Post-crisis Europe can revitalize its economy by tackling the climate challenge," the report states.

A 30% emissions reduction could boost the EU’s GDP by 0.6% per year, create around 6 million extra jobs in Europe by 2020 and increase European investments from 18% of GDP to up to 22%.

This would mean an increased European GDP of €620 billion ($847.4 billion) by 2020, or by 6% above business as usual trends, it says.

Global Offset Experts believes the study also says numerous EU nations had recovered from a global crisis in 1929 with an upswell of investments, especially into the military. The report says that now investment into a cleaner economy could drive recovery after the 2007-08 financial crisis.

"Until now, studies have worked on the basis that new resources to tackle carbon emissions would have to come from competing uses, and would therefore cost a small amount," Chris Huhne the British Energy and Climate Change Secretary  told Global Offset Experts recently. "This study is arguably more realistic in showing how green growth can create work for the unemployed and generate new income and prosperity."

The 31-page paper was based on the assumption that there would be no legally binding climate pact beyond what it termed “modest pledges” made at the 2009 UN Copenhagen Climate Change Summit.

European governments have agreed to increase their target to cut emissions to 30% if there is a binding global pact.These member countries are against a unilateral shift to 30%, feeling it would hurt growth and employment, primarily in industries dependant on fossil fuels.

The U.S. has so far failed to pass legislation through the Senate to enforce a cut of between 3% and 4% by 2020 form 1990 levels, with many Republicans fearing the cuts would give an advantage to emerging nations led by China.

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